IP Support Institution for SMEs
Kazuyuki Motohashi
Professor, Department of Technology
Management for Innovation, The
University of Tokyo
Outline of Lecture
• Why do we need SME innovation policies?
• Example of SME innovation policies
• Role of IP support institutions in Japan
Why SME innovation policy?
SMEs as a source of new product and services
No competitor
SMEs
Mostly large firms
Half large firms
A little large firms
Time of
entry
Present
Entry of large firms into market
SME innovation in a context of
developing economies
• Innovation: a whole process of business creation
based on some technological (or non technological)
findings
• Large multinationals + small local firms for high-tech
sectors + small local firms for traditional industries :
“how to promote competitive local companies?”
• Strategy
1.
2.
3.
4.
How to promote innovation seeds in local companies?
How to facilitate technology spillover from multinationals?
How to capitalize on local innovation system?
How to foster innovation oriented business environment?
Objectives of SME innovation policy
Large firms:
typically
multinationals
Universities and
Public Research
Institutions
Government
Funding Agency
1
1
2
Local small firms:
subcontracting
4
3
Local small firms in
traditional industry
Business Environment, Framework Condition etc.
How to promote innovation seeds in SMEs
Japanese version of SBIR (Small Business Innovation
Research)
• Started in 1999
• Setting the target amount of R&D subsidy to SMEs
• Inter-ministerial joint approach: 7 ministries in 2005 (ex. MEXT, METI
etc.)
• Other financial incentives
– Low interest loan to SME’s innovation activities
– Wider coverage of SME’s loan guarantee program
Similar system in the world
• US: pioneer
• Korea, Taiwan
• Philippines: SME loans and loan guarantee
7/14/2017
6
Why SME innovation policy?
Availability of Finance
“Valley of Death” (OECD: based on NIST material)
The Valley
of
Death
Basic Research
Product Development
Market
Implementation of SBIR
35
30
billion Y E N
25
20
15
10
5
0
1999FY
2000FY
2001FY
2002FY
T argets
7/14/2017
2003FY
2004FY
2005FY
R esults
8
Technology spillover from multinationals?
• FDI regulation: Growth by inward FDI, national
strategy for industrial development (ex. China,
Thailand, historically Japan)
• Difference in industry (product architecture), for
example, electronics (modular) vs automobile
(integral)
• Taiwan’s computer industry development: OEM ->
ODM -> OBM
• Being inside global supply chain is important. How to
build indigenous capabilities? Potential role of IP
SME IP Promotion Policies in Japan
• Information dissemination and consulting services:
JPO, INPIT, chamber of commerce, SMRJ
(Organization of SMEs and Regional Innovation,
Japan)
• Reduction of patent application fees, free search
service of prior arts: JPO and related institutions
• Survey of best practices of SME IP management:
SMRJ
• Support to settling overseas IP infringement cases
(JETRO)
IP Consultation framework
Business
Strategy
•Competitive analysis in
market (SWOT)
•Use of IP from
business strategy
viewpoints
R&D Strategy
IP Strategy
•Patent or trade secret
•Re-evaluate existing patents
•Use of patent map
•Licensing
•Dealing with infringement
• Use of IP information
to evaluate a firm’s
technological strength
• Potential R&D
partnership
IP Consultation Flow
What is your
competitive advantage?
Is this
technological
factor?
YES
NO
It is brand (trademark) or
channel, cost…….?
Can you identify
infringement?
NO
YES
Patent Strategy
Know-how
management
Structure of IP Consultation Manual
(example by JPO)
• Drafted by industry
people, patent attorneys
and business consultants
• Case study bases (2-3
cases are developed
annually
• All contents are
published and available
via internet
http://www.jpo.go.jp/cgi/
link.cgi?url=/torikumi/ch
ushou/manual_tizaikeiei.
htm (only in Japanese)
Conclusion
• Innovation in SME becomes an important
policy (even in developed countries)
• IP management is an integral part of SME
innovation (linchpin of business and R&D
management)
• IP supporting institution’s major role is
consultation (depending on individual business
needs)
• It would be useful to have a manual for SME
IP supporters